DirecTV is promoting its pay TV package without the need for a satellite dish.

• DirecTV is introducing its updated ad campaign, informing customers that they can now watch DirecTV without the need for a satellite dish.
• DirecTV is losing pay TV customers, like its cable and satellite provider peers, and wants to emphasize its streaming options, which are internet TV bundles.
• The company has recently featured former NFL star and college football coach Deion Sanders in its ad campaign for the upcoming college football season. DirecTV emphasizes its sports TV package during a time when live sports attract the highest ratings.

DirecTV can be watched without a satellite dish, as Coach Prime wants consumers to know.

The company renowned for offering the conventional TV package via satellite dishes mounted on houses and buildings is introducing the latest version of its advertising campaign, "For the Birds," featuring NFL legend and college football coach Deion Sanders as a new member of the team.

DirecTV is not just a satellite TV provider, but also offers streaming services.

DirecTV is emphasizing that a satellite dish is no longer necessary for its service as pay TV distributors, including satellite and cable companies, have experienced customers leaving for streaming services.

"Vince Torres, chief marketing officer at DirecTV, stated that they have been selling a streaming product for some time and it is not new to them. However, many customers were unaware of it. They built this as an alternative to the traditional dish setup. According to Torres, 80% of people prefer not to put the dish on the side of their house."

According to the company's research, 75% of consumers still believed a satellite dish was necessary for DirecTV despite the streaming option being available since 2016, Torres stated. "That's a significant number of potential customers."

Prime time

Despite Torres' argument that DirecTV remains a satellite TV provider and values its customers, the company has shifted its marketing focus due to this research and the evolving media landscape.

Earlier this year, an ad campaign was launched featuring actors Henry Winkler and Steve Buscemi, who portray pigeons looking through windows and questioning how DirecTV can be watched without a satellite dish on their rooftops.

The pigeons mourn the absence of the dishes. Winkler's Frank stated, "I adore conducting my business on those items," while Buscemi's Bobby joked, "Those dishes kept the rain from soaking our beaks."

In an interview, Buscemi revealed that his interest in the commercial was sparked by the changes in media, but what truly sold him was honing the voice and persona of a New York City pigeon.

"I found the creative aspect of it more appealing," Buscemi stated. "I thought the characters were hilarious."

Since the launch of the ad campaign, there has been a 50% increase in prospects visiting DirecTV's website, according to Torres.

The inclusion of Sanders coincides with one of the busiest periods for U.S. sports, which includes college football and the NFL, the start of NBA and NHL, and MLB's postseason.

As the coach of the NCAA's Colorado Buffaloes, Sanders, once known as "Prime Time" in the NFL and now known as "Coach Prime," wears a cowboy hat and gold chain, essentially portraying himself.

"We have a long history together, dating back to 2011. It was only fitting for us to reunite once again. Coach Prime put his wings back on for DirectTV!"

In 2011, Sanders was like Tinker Bell in an NFL football jersey, suspended on strings while filming a DirecTV commercial. Now, voicing a pigeon has been a unique experience for him.

Cord cutting

Since Sanders' last ad campaign with DirecTV, the industry has undergone changes.

Broadband offerings from cable TV companies intensified competition for satellite TV providers like DirecTV and Dish, who were once major distributors of the TV bundle.

Craig Moffett, an analyst at MoffettNathanson, stated that for a while, satellite companies focused on serving customers in rural areas where cable broadband was scarce.

The competition between cable and satellite for pay TV customers has decreased since streaming has led many to abandon the bundle.

The phenomenon of cord-cutting has led media companies to take more of their top content, such as sports, and put it on streaming platforms. As a result, the TV package that is left to sell is not very appealing.

According to MoffettNathanson, the first quarter of this year experienced the highest ever losses of traditional pay TV subscribers, with an estimated total of 2.37 million.

Despite the private nature of DirecTV's financials due to TPG's acquisition of a 30% stake in 2021, the company has approximately 11 million customers across satellite and streaming, according to sources. MoffettNathanson reports that DirecTV gained over 20,000 streaming customers this year.

A Gemini box is also provided by DirecTV for its streaming options, in addition to allowing customers to use their own device like a Roku.

DirecTV provides two streaming services: DirecTV Stream, a subscription-free internet TV package, and DirecTV via internet, which is accessible only through the Gemini device and requires a contract.

According to Antenna data, DirecTV Stream has the lowest percentage of monthly gross additions among Hulu + Live TV, Philo, Sling TV, and YouTube TV, but it frequently experiences one of the lowest monthly rates of subscriber losses.

""The challenge for consumers is that it's becoming harder to find the content they want to watch due to the fragmentation of TV and streaming services," Torres stated, likening the situation to the entertainment industry's version of road rage."

The device enables users to seamlessly switch between streaming apps like Netflix and the DirecTV guide without having to change remote controls, inputs, or leave apps.

Other pay TV providers, like 's X1 set top box and the Xumo streaming device, a joint venture between ' and Comcast, also offer similar options.

Sticking with sports

For some time, sports have been a key selling point for DirecTV, and the company has made an effort to distinguish itself by emphasizing this aspect.

Since its inception in 1994, DirecTV had been the exclusive provider of the "Sunday Ticket" package of games. However, as of the 2023 NFL season, YouTube TV has acquired the rights to "Sunday Ticket."

Many businesses still rely on DirecTV's "Sunday Ticket" subscription to draw big crowds, as it shows all out-of-market NFL games.

The streaming industry has disrupted the traditional TV programming, particularly in the realm of live sports. Both Amazon Prime Video and Netflix have secured exclusive NFL games, while legacy media companies have obtained exclusive game rights for their expanding streaming platforms.

DirecTV is still promoting that it offers the most comprehensive live sports package among pay TV and streaming providers on the residential consumer front. Its streaming service includes all nationally broadcast games and regional sports networks, which is rare for internet TV packages.

Torres stated that Coach Prime is crucial during football season.

"Coach Prime is highly recognizable, fun to work with, and effective at getting messages out," said Torres. "To continue building on our brand message and educating the U.S. population, who better to join the flock than Coach Prime?"

Disclosure: Comcast owns NBCUniversal, the parent company of CNBC.